Evaluating Opportunities When People are Uncertainty Averse
AbstractWe consider the problem of ranking sets of alternatives. Standard approaches to this problem regard the addition of an alternative to a set containing one element as enhancing choice. We argue that this monotonicity axiom may not be desirable when an agent is uncertain as to the value of this additional alternative. We replace monotonicity with an uncertainty aversion axiom, and also introduce an axiom that produces lexicographic behaviour. These axioms, in conjunction with an independence axiom, enable us to prove a characterisation theorem. This theorem says that sets are ranked in terms of the number of uncertain elements that they contain, the fewer the better. This is the only ranking rule that satisfies our axioms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Economic and Social Studies in its journal Economic and Social Review.
Volume (Year): 40 (2009)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.esr.ie
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prasanta K. Pattanaik & Yongsheng Xu,, .
"On Diversity and Freedom of Choice,"
97/18, University of Nottingham, School of Economics.
- Klaus Nehring & Clemens Puppe & James D. Hamilton, 2003.
"On The Multi-Preference Approach To Evaluating Opportunities,"
977, University of California, Davis, Department of Economics.
- Klaus Nehring & Clemens Puppe, 1999. "On the multi-preference approach to evaluating opportunities," Social Choice and Welfare, Springer, vol. 16(1), pages 41-63.
- Klaus Nehring & Clemens Puppe, . "On The Multi-Preference Approach To Evaluating Opportunities," Department of Economics 97-07, California Davis - Department of Economics.
- Antonio Romero-Medina, 2001.
"More on preference and freedom,"
Social Choice and Welfare,
Springer, vol. 18(1), pages 179-191.
- Romero-Medina, Antonio, . "More on preference and freedom," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/4140, Universidad Carlos III de Madrid.
- Romero-Medina, Antonio, 2001. "More On Preferences and Freedom," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/5589, Universidad Carlos III de Madrid.
- Barbera, S. & Bossert, W. & Pattanaik, P.K., 2001.
"Ranking Sets of Objects,"
Cahiers de recherche
2001-02, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Gekker, Ruvin & van Hees, Martin, 2006. "Freedom, opportunity and uncertainty: A logical approach," Journal of Economic Theory, Elsevier, vol. 130(1), pages 246-263, September.
- Sebastiano Bavetta & Vitorocco Peragine, 2006. "Measuring autonomy freedom," Social Choice and Welfare, Springer, vol. 26(1), pages 31-45, January.
- Sen, Amartya, 1991. "Welfare, preference and freedom," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 15-29, October.
- Puppe, Clemens, 1996. "An Axiomatic Approach to "Preference for Freedom of Choice"," Journal of Economic Theory, Elsevier, vol. 68(1), pages 174-199, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Olive Sweetman).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.